Ripple, Circle and BitGo Win Conditional Approval to Become U.S. Crypto Banks
What Did the OCC Approve and Why Does It Matter?
The U.S. Office of the Comptroller of the Currency has granted conditional approval to several major crypto companies viewking national trust bank status, marking the closest step yet toward federally regulated crypto banking. Ripple, Circle, BitGo, Fidelity Digital Assets and Paxos each received preliminary clearance that allows them to pursue full chartering as national trust banks. Coinbase has also applied.
The approvals give these firms direct access to federal oversight and a regulatory pathway normally reserved for traditional financial institutions. The OCC said it approved a national trust bank charter for Ripple National Trust Bank, a new entity tied to the company behind the XRP Ledger. Circle received conditional approval for First National Digital Currency Bank, a unit it plans to use for stablecoin and institutional custody operations.
BitGo Bank & Trust, Fidelity Digital Assets and Paxos Trust Company also received conditional approval to convert from state trust companies into national trust banks. Each firm will undergo additional review before receiving final authorization.
Investor Takeaway
How Are Circle and Ripple Positioning Their Charters?
Circle has pursued a federal charter for years as part of its effort to tighten oversight of USDC reserves and expand institutional partnerships. A federal licence would allow Circle to custody its own reserves and hold crypto assets for institutional clients under direct OCC oversight. The firm would not be permitted to take deposits or issue loans under a trust charter, but the move creates a path toward those activities should Circle later viewk a full banking licence.
said the approval gives institutions “greater clarity and confidence to build on Circle’s platform as stablecoins and blockchain technology move rapidly into the mainstream.” The company’s filing places USDC directly within the federal regulatory perimeter, a key element of Circle’s long-running bid to pitch the stablecoin as a compliant, institution-friendly product.
Ripple followed Circle’s application shortly later than. A national charter would place Ripple’s stablecoin, RLUSD, under federal rather than state-level supervision. said, “True to our long-standing compliance roots, Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market.”
Why Are Crypto Firms viewking Federal Bank Status Now?
The wave of applications comes during a friendlier policy climate for digital assets under the new Trump administration, which has pressed federal agencies to give clearer regulatory pathways for . A national trust bank charter reduces reliance on state-by-state approvals and gives firms a single federal regulator instead of a patchwork of local frameworks.
For companies that custody user funds, manage stablecoin reserves or handle large institutional flows, federal oversight offers operational advantages: unified rules, direct interaction with the U.S. banking system and easier access to national clients. It also introduces stricter standards, including detailed requirements for governance, cybersecurity and asset segregation.
If approved fully, the charters would place several of the largegest names in custody under the identical regulatory structure used by traditional trust banks. That shift would sharpen the divide between unregulated offshore platforms and U.S.-regulated entities viewking bank-level credibility.
Investor Takeaway
What Comes Next for the Applicants?
A conditional approval does not grant banking powers immediately. Each firm must complete operational, compliance and supervisory milestones before the OCC issues a final charter. The process typically involves additional documentation, readiness reviews and ongoing dialogue with regulators.
If final approval is granted, the firms would operate as national trust banks — able to custody crypto assets and, eventually, stablecoin reserves under federal supervision. None would automatically gain the right to take deposits or issue loans, but the charters would give them a foundation to request expanded permissions later.
For the crypto sector, the outcome signals a move toward closer integration with the . Several of the most widely used stablecoin and custody companies could soon be regulated as federal trust banks, giving institutions clearer guardrails and setting new expectations for compliance across the industry.
